Issue - meetings

2.30

A representative from the external auditors Ernst & Young will attend to present the following item:

·         Annual Audit Letter

RESOLVED: to note the report.

Paul King introduced the Annual Audit Letter which is largely a summary of the audit result report.  He drew attention to the new standards that will have to be introduced, outlined on Agenda Pages 42 and 43.  The leasing standard will have an impact.

Members welcomed the more compact report format.  Paul King responded to issues raised as follows:

·           The main issues involved in valuation of land and buildings are depreciation, existing use and market value.

·           Reference is made to codes and guides and they can involve E&Y’s own valuers if necessary.  The last time that they had to do that was with the Oxfordshire Museum in 2016/17 and they were happy with the Council’s evaluation.

·           The issue regarding Accounting for Service Concessions on Agenda Page 34 related to external provision of care homes.  This is a legacy issue from the 2016-17 audit and the external auditors are happy with the accounting changes introduced by the Council in 2017-18.

·           The unadjusted misstatement referred to on Agenda Page 33 relates to a difference between the estimated values of Pension Fund assets forecast at the end of December and the actual figures available at the end of March.  This is therefore a timing difference in the availability of information, and does not reflect any error or omission on the part of either the actuary or Council officers. The £14.3m difference is not material.

RESOLVED: to note the Annual Audit Letter.